Lotte is implementing a project to build a large-scale multi-purpose complex in Ho Chi Minh City, Vietnam, by pouring in a combined $900 million (1,226.7 billion won).
The project involves the development of “a smart city,” encompassing a 60 ground floor, shopping mall, apartment building office and hotel structures on a lot covering 50,000 sq. meters.
Lotte Group is devoting itself to making Vietnam a “business turf of a goose bearing golden eggs” by having the group’s 19 subsidiaries enter the Vietnamese market.
Lotte Group Chairman Shin Dong-bin is known to have stressed the need for pouring in all capabilities to Vietnam.
Lotte said on Sept. 4 the business group has been implementing an “eco smart city” in the Thu Thiem district in Ho Chi Minh City.
The eco smart city will be a combination of advanced smart technologies and distribution expertise Lotte has accumulated.
A Lotte official said Thu Thiem will be Vietnam’s first top-rated smart complex in which remote medical care using IoT and AI will be offered, and drones and robots will be introduced at the shopping mall.
Vietnam plans to develop the Thu Thiem district, taking its cue from Pudong, Shanghai, China.
Speaking at a ground-breaking ceremony on Sept. 2.
Vietnamese National Day, Lotte Chmn. Shin Dong-bin said, “This year is a year celebrating the 30th anniversary of establishing diplomatic ties between Korea and Vietnam, and Lotte Group will further expand investments into Vietnam.”
A bird’s eye-view of an “eco smart city” in the Thu Thiem district in Ho Chi Minh City.
Lotte will dedicate Lotte Mall Hanoi in Guan Tay Ho, a commercial district of Hanoi’s new city, next year. The 330 billion won project calls for building a 23-floor shopping mall, a hotel, service residences and office structures.
Lotte’s aggressive investments in Vietnam may be construed as the group’s move to raise overseas business sales, which have been sluggish.
Lotte saw its overseas business sales plunge from 9,034.2 billion won in 2019 to 8,269.1 billion won last year.
A Lotte official said Lotte was forced to withdraw from the Chinese market, incurring a few trillion won in losses.
Lotte aims to raise its overseas business sales to 100 trillion won in the Southeast Asian market, including Vietnam, the official said. Lotte Group posted about 75 trillion won in sales last year.
Lotte is one of companies which have established presence in Vietnam.
Lotteria, which entered the Vietnamese market in1998, has about 260 outlets to rank first in the Vietnamese fast food market.
Lotte Mart and Lotte Department have 15 and two outlets in the Southeast Asian country, respectively. Lotte Duty-Free has outlets in Danang, Nha Trang and Hanoi.
Lotte Center, which was dedicated in 2014, has been selected as one of Vietnam’s landmarks. Lotte Ventures became the first foreign venture investment company to obtain a green light to establish a locally incorporated entity from the Vietnamese government.
Lotte plans to utilize Vietnam as a test-bed to implement businesses, which cannot be realized due to regulatory barriers.
For instance, Lotte Group plans to nurture the mobility sector as one of its future businesses. Lotte Rent-A Car is building diverse business models by exploring local startups.
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